PSU - Global Brand Management - Alain Hutinel Part II Defining and evaluating Brand Equity and Brand Strength Defining Brand Identity PSU - Global Brand Management - Alain Hutinel

EVALUATING THE BRAND STRENGTH ON THE MARKET From Motivationist Marketing Models to Brand Strength & Brand Equity PSU - Global Brand Management - Alain Hutinel

Motivationist models inputs Favorability of Attitudes with the brand name Familiarity with the brand name Image profile Perceptual maps Preference Behavorial models PSU - Global Brand Management - Alain Hutinel

Favorability of Attitudes and Degree of Familiarity - - ++ + Brand D Brand C Familiarity Brand B Is this ever possible ????!! Brand A - PSU - Global Brand Management - Alain Hutinel

Image profile of the brand C Criteria 1 Criteria 2 Criteria 3 Criteria ... n - - - +++ Brand + Product PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Perceptual maps Prestige cars among managers A car prestigious to own High * Mercedes BMW * * Jaguar * Alfa A financially effective car Toyota(Lexus) * * Audi High Low *Saab Honda(legend)* Volvo * Low PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Preference Models Knowers 15% 100 % 70% 25% 15% Preferers Non Knowers Indifferents Rejectors PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Behavorial models Brand A Brand B Aware Repurchase Positive Triers Satisfied Total market Which is strongest ??? PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel We are looking for Brand Strength &/or Equity = Brand Capacity to create Meanings and Added Value PSU - Global Brand Management - Alain Hutinel

EVALUATING BRAND STRENGTH &/or EQUITY 1) What we must know 2) On what criteria is Brand strength measured ? 3) Where do we stand in the brand building continuum ? PSU - Global Brand Management - Alain Hutinel

2 approaches : Keller & Aaker (+ Hutinel) Customer approach : Keller General « Market » approach : Aaker PSU - Global Brand Management - Alain Hutinel

Customer Based Brand Equity ACCORDING TO KELLER PSU - Global Brand Management - Alain Hutinel

Motivation for Customer-Based Brand Equity Model Marketers know strong brands are important but aren’t always sure how to build one. CBBE model was designed to be … comprehensive cohesive well-grounded up-to-date actionable PSU - Global Brand Management - Alain Hutinel

Rationale of Customer-Based Brand Equity Model Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures: Thoughts Feelings Images Perceptions Attitudes PSU - Global Brand Management - Alain Hutinel

Building Customer-Based Brand Equity Building a strong brand involves a series of steps as part of a “branding ladder” A strong brand is also characterized by a logically constructed set of brand “building blocks.” Identifies areas of strength and weakness Provides guidance to marketing activities PSU - Global Brand Management - Alain Hutinel

CUSTOMER-BASED BRAND EQUITY PYRAMID RESONANCE SALIENCE JUDGMENTS FEELINGS PERFORMANCE IMAGERY 4. RELATIONSHIPS = What about you & me? 3. RESPONSE = What about you? 2. MEANING = What are you? 1. IDENTITY = Who are you? PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Salience Dimensions Depth of brand awareness Ease of recognition & recall Strength & clarity of category membership Breadth of brand awareness Purchase consideration Consumption consideration PSU - Global Brand Management - Alain Hutinel

Performance Dimensions Primary characteristics & supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price PSU - Global Brand Management - Alain Hutinel 23

PSU - Global Brand Management - Alain Hutinel Imagery Dimensions User profiles Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity Purchase & usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Personality & values Sincerity, excitement, competence, sophistication, & ruggedness History, heritage, & experiences Nostalgia Memories PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Judgment Dimensions Brand quality Value Satisfaction Brand credibility Expertise Trustworthiness Likability Brand consideration Relevance Brand superiority Differentiation PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Feelings Dimensions Warmth Fun Excitement Security Social approval Self-respect PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Resonance Dimensions Behavioral loyalty Frequency and amount of repeat purchases Attitudinal attachment Love brand (favorite possessions; “a little pleasure”) Proud of brand Sense of community Kinship Affiliation Active engagement Seek information Join club Visit web site, chat rooms PSU - Global Brand Management - Alain Hutinel

Customer-Based Brand Equity Model Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Performance Imagery INTENSE, ACTIVE LOYALTY RATIONAL & EMOTIONAL REACTIONS POINTS-OF-PARITY & POINTS-OF-DIFFERENCE DEEP, BROAD BRAND AWARENESS

Sub-Dimensions of CBBE Pyramid LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT QUALITY CREDIBILITY CONSIDERATION SUPERIORITY WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT CATEGORY IDENTIFICATION NEEDS SATISFIED PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES

Application: Identify the key drivers of brand equity Performance P-1 P-10 P-7 P-8 P-9 P-3 P-4 P-6 P-5 P-11 P-12 I-2 I-9 Imagery I-1 I-3 I-6 I-5 I-10 I-7 I-8 I-11 I-12 I-4 F-2 Feelings F-1 F-3 F-4 F-6 F-5 F-7 F-8 F-9 F-11 F-12 F-10 J-2 Judgment J-1 J-3 J-4 J-6 J-5 J-10 J-7 J-8 J-9 J-11 J-12 0.17 0.66 0.24 0.65 R-2 Resonance R-1 R-3 R-4 R-6 R-5 R-10 R-7 R-8 R-9 R-11 R-12 0.58 0.49

PSU - Global Brand Management - Alain Hutinel We are looking for Brand Strength = Brand Capacity to create Meanings and Added Value PSU - Global Brand Management - Alain Hutinel

General « Market » Approach ACCORDING TO AAKER … & HUTINEL PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel PREFERENCE QUALITY IMAGE & ASS. AWARENESS PROPERTY LOYALTY BRAND STRENGTH (EQUITY) VALUE FOR THE COSTUMER VALUE FOR THE FIRM PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Brand preference If a customer / prospect is interested by the product price, or it’s caracteristics or usage etc... and is not convinced in the Brand’s advantage, then the Brand preference is weak and the Brand added value also weak. Intensity of Brand Preference Probably the best measurement of attitudinal «strength» towards the brand, of brand loyalty and of brand value to the individual costumer as well as to the firm. PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Awareness + What is it ? - T.O.M - Spontaneous - Aided + ..... ? + Saliency - connotations - familiarity - perceived value - activeness - esteem - power - notoriousness/ - reputation PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel

The Image of the Brand Itself Definition : « All associations suggested by the Brand » + respect trustworthiness innovativeness creativity meanings ascribed, values attachment affective measures wantibility personality affectivity power .... PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel

Levels of brand Loyalty or Strength of Brand Link Promotes the Brand Trustfull, likes the Brand Satisfied, but still could change Conservative to the Brand, but not really satisfied Indifference to the brand PSU - Global Brand Management - Alain Hutinel

Measuring Brand Loyalty Behavior & purchase acts Switching costs Satisfaction Preference Attitudes & emotions towards the Brand Purchase Intent PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Perceived quality PIMS results «On the long run, perceived quality is the most influential factor of ROI and ROS ratios». it affects : market share, price marketing efficiency costs PSU - Global Brand Management - Alain Hutinel

Perceived Brand quality Different from product quality does not rely ONLY on usage ? PSU - Global Brand Management - Alain Hutinel

Brand Strength Building Continuum Bond + Affinity Advantage ? Performance Relevance Presence PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Brand Strength Level & depth of loyalty (Intensity of) Preference Awareness + saliency Quality Image, positionning, associations selling value price premium potentiality how much bonding ? PSU - Global Brand Management - Alain Hutinel

Towards Brand Identity PSU - Global Brand Management - Alain Hutinel

The Brand Chinese Picture An Object An animal A celebrity A country A location An atmosphere A painting … Synonymous Brands Antonymous Brands PSU - Global Brand Management - Alain Hutinel

Brand Mental Map Build-up Your Brand store fun friendly flashlights PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Most typical Physical offer and salient aspects Of Brand Most typical/salient aspects of Brand « Persona » Most typical/active apects of Brand Culture & Ligitimacy Nature & activenessof Relation established by Brand BRAND IDENTITY Brand Non-Adepts’ Set of mind of Brand & of Brand Adepts Brand Adepts’ set of mind of Brand & of themselves PSU - Global Brand Management - Alain Hutinel

Brand Personality Factors and facets Sincerity : down-to-earth, Honest, Wholesome, Cheerful Excitement : Daring, Spirited, Imaginative, Up-to-date Competence : Relaible, Intelligent, successful Sophisitication : upper-class, charming, brilliant Ruggedness : outdorsy, tough …… PSU - Global Brand Management - Alain Hutinel

Brand Equity Measurement PSU - Global Brand Management - Alain Hutinel

Brand Tracking Studies Structure Brand Awareness and usage Brand Judgments Brand Performance Brand Imagery Brand Feelings Brand Resonance PSU - Global Brand Management - Alain Hutinel

Brand Awareness & Usage/Experience Spontaneous, aided awareness Usage state Established trial Next purchase ? Competition awareness Spontaneous associations Competitive set (usage, trial) Level of familiarity PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Brand Judgments Relative to Brand « Business Entity » Innovative ? Knowledgeable ? Trustworthy ? Likable ? Concern about customers ? Concerned about society ? Admirable ? Quality of management ? ……. Relative to Brand Offer Attitudes Satisfaction level, compared Recommend to others ? Value for money ? What is best sold by the brand ? What you like best ? What is different ? Superior, most satisfying vs others ? …… PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Brand Performance Convenience Efficiency Quality All aspects of brand offer specific features, benefits, promises, positionnings ….. Brand Imagery Admiration Respect Dowmn-to-earth Daring Up-to-date Reliable Successful Uuper class Charming Out-doorsy ……. PSU - Global Brand Management - Alain Hutinel

PSU - Global Brand Management - Alain Hutinel Brand Feelings Warmth ? Fun ? Excitement ? Security ? Social Approval/enhancement ? Self-respect ? ……. Brand Resonance Do you consider yourself as loyal ? Occasionaly ….. To would do anything to buy ? Love ? Identification with users ? Connected to the Brand ? Recommend the Brand ? Interest in Brand achievments ? Proudness of using ? Follow news ? Go to website ? Own Stock ? PSU - Global Brand Management - Alain Hutinel

How do brands work ? The car industry Cases Read articles The rôle of marque, How people buy, Reviving up Autoindustry & New Brand of Brand Management Identify how, when, why, Brand/marque influences the decision-making process & choice in the different segments/clusters Sort rational and emotional influences Apply to your brand Prepare presentation PSU - Global Brand Management - Alain Hutinel